Imported Cars in India: Why They Dominate, Cost More, and Who Really Buys Them
When you see a imported car, a vehicle built outside India and brought in for sale. Also known as fully built unit (FBUs), these cars often come with premium badges, advanced tech, and prices that shock even well-off buyers. They aren’t just cars—they’re status symbols, carefully chosen to stand out in a country where most people drive locally made models. But why do Indians still pay 2-3 times more for an imported car when similar models are built right here?
The answer lies in car import duties, taxes that can push the final price up by over 100%. A BMW or Mercedes sold in Germany might cost $40,000. In India, after customs, GST, and cess, that same car can hit $100,000. That’s not a mistake—it’s policy. The government uses these high taxes to protect car manufacturing in India, a fast-growing sector led by Tata, Maruti, Hyundai, and Mahindra. Local factories get subsidies, lower taxes, and government support to make affordable cars. Imported cars? They pay the price—literally.
Still, people buy them. Why? Because for many, it’s not about the car. It’s about what the car represents. An imported car signals success, exclusivity, and global taste. In cities like Mumbai, Delhi, and Bengaluru, you’ll see more imported luxury sedans and SUVs than you’d expect. These buyers don’t care about fuel efficiency or repair costs—they want the brand, the silence, the leather, the prestige. Meanwhile, Indian manufacturers are catching up. New electric SUVs from Tata and MG now match imported models in features, without the 100% tax. The gap is closing.
What you’ll find below are real stories and facts about imported cars in India: who buys them, which models are most popular, how taxes shape the market, and why even luxury brands are now making cars here instead of shipping them in. This isn’t just about cars. It’s about economics, culture, and the quiet revolution happening in India’s roads.
Wondering why folks talk about a 25-year rule for imported cars in India? This article breaks down whether vehicles not made in the USA must be older than 25 years to be legally imported, clarifies how the rule actually works in the Indian context, and uncovers some practical tips for enthusiasts and buyers. We sort out myths, show what’s allowed, and dive into how manufacturers respond. You’ll find real-world examples and a few ways to legally enjoy rare wheels on Indian roads.